The Effect of R&D Investments on Stock Returns: A Study on Technology and Information Technology Firms in BIST

Özcan M., Ağırman E., Yılmaz Ö.

MALIYE DERGISI, sa.166, ss.139-158, 2014 (Hakemli Dergi) identifier

  • Yayın Türü: Makale / Tam Makale
  • Basım Tarihi: 2014
  • Dergi Adı: MALIYE DERGISI
  • Sayfa Sayıları: ss.139-158
  • Anahtar Kelimeler: R&D Investments, Stock Returns, Panel Data Models, BIST
  • Atatürk Üniversitesi Adresli: Evet

Özet

Returns of the R&D investments are utilised for taking managerial decisions within the firm and also by the investors who think of making investments in the firm. In this study, the effects of the R&D investments made by the technology and information firms which are traded on BIST on the stock returns are investigated with the data of 2000-2013 period. Panel data analysis method is used in the study. According to the results, it is observed that while there has been no causality from R&D expenditures to stock returns, there has been causality from stock returns to R&D expenditures. Error correction model results show that the short term imbalances emerged have been fixed in the long term.